REGULATION OF FOREIGN INSTITUTIONAL INVESTORS (FIIs)   The Union Government allowed the entry of FIIs in order to encourage the capital market and attract foreign funds to India. Today, FIIs are permitted to invest in all securities traded on the primary and secondary markets, including equity shares and other securities listed or to be listed on the stock exchanges. The original guidelines were issued in September 1992. Subsequently, the Securities and Exchange Board of India (SEBI) notified the SEBI (Foreign Institutional Investors) Regulations, in November 1995.   DIFFERENT INVESTMENT AVENEUS   Over the years, different types of FIIs have been allowed to operate in Indian stock markets. FIIs can invest in all securities traded on the primary and secondary markets. Such investments include equity/debentures/warrants/other securities/instruments of companies unlisted, listed or to be listed on a stock exchange in India including the Over-the-C fiat currency ounter Exchange of India, derivatives traded on a recognized stock exchange and schemes floated by domestic mutual funds. Apart from the above mentioned securities, now they include such as pension funds, mutual funds, investment trusts, asset management companies, nominee companies, incorporated/institutional portfolio managers, university funds, endowments, foundations and charitable trusts/societies with a track record. Proprietary funds have also been permitted to make investments through the FII route subject to certain conditions.   LISTING FORMALITIES   The Securities and Exchange Board of India is the nodal agency for dealing with FIIs, and they have to obtain initial registration with SEBI with prescribed registration fee. For granting registration to an FII, the SEBI takes into account the track record of the FII, its professional competence, financial soundness, experience and such other criteria as may be considered relevant by SEBI.